5.5. SR 11-01-2010 - Laserfiche WebLink

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L/BERTY INSURANCE AGENCY 1560 Hart Blvd. Monticello, MN 55362 October 27, 2010 To: Honorable Mayor & Council Persons City of Elk River Thank you for time on your agenda for the November 1st meeting to review the City's 2010 League of Minnesota Cities Insurance Trust proposal. As usual, Tim, Lori, Theresa and City staff have been very good about this year's renewal preparations, and I appreciate the opportunity to work with them. The package results are excellent this year. I have also included the Workers Compensation costs on the premium display this year. The Workers Comp renewed on 10/O1/10. Although we have an increase in Workers Compensation costs for this year, there is excellent news on the package coverages including, Property, Autos, Municipal Liability, etc. The package is down in cost by about 'h% or about $1,880 from last year's annual renewal premium. League rates have either decreased or stayed about the same with only a few slight adjustments upward. Liquor Liability rates actually decreased by 15%. The City opted for a special deductible two years ago and we were again able to renew favorably with a lower aggregate. Here are a few thoughts I'd like to point out to you on this year's renewal: 1) 2010 LMCIT Rates-LMCIT property rates did not change significantly, or decreased for 2010. We added only about $123,000 in property value to the schedule due to reduced construction cost in view of the economy. The number of vehicles to insure also decreased this year. 2) The City received a dividend of $ 47,767 from League of Minnesota Cities Insurance Trust in December, 2009. This more than twice the amount the City received for 2008. This is due to favorable loss results for the League program and improved investment results. 3) The builders' associations claim dropped off the "experience period" last year, so there is no impact to this year's renewal. The liability limit is now at the new tort limit of $1,500,000 for any one `occurrence". 4) ERMU Equipment Breakdown coverage has again been included with this year's renewal. In the past, the generation equipment coverage was purchased separately from another company. We made the change in April, 2009. The current annual cost for the ERMU generation equipment's Equipment Breakdown coverage is about $44,500.